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Lake Success, New York-based Broadridge Financial Solutions, Inc. (BR) provides investor communications and technology-driven solutions for the financial services industry. With a market cap of $27.3 billion, Broadridge operates through Investor Communication Solutions, Global Technology and Operations, and other segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Broadridge fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the information technology services industry.
Broadridge recently touched its all-time high of $237.96 on Dec. 6 and is currently trading 2.5% below that peak. BR has gained 9.6% over the past three months, slightly lagging behind the Technology Select Sector SPDR Fund’s (XLK) 10% gains during the same time frame.
Over the longer term, Broadridge’s performance looks even grimmer. BR has gained 12.7% on a YTD basis and 19.7% over the past 52 weeks, underperforming XLK’s 25.4% gains in 2024 and 26% returns over the past year.
To confirm the overall bullish trend, BR has traded mostly above its 200-day moving average over the past year and above its 50-day moving average since early July with minor fluctuations.
Broadridge’s stock prices soared 4.1% after the release of its Q1 results on Nov. 5. The company has continued to observe growth in its recurring revenue. Driven by net new business in the ICS segment and internal growth in the GTO segment, its recurring revenues increased 3% year-over-year to $900 million. Observing this momentum, Broadridge raised its full-year constant currency recurring revenue growth guidance from previously announced 5% - 7% to 6% - 8% range.
However, due to lower corporate action activity and the lower volume of mutual fund proxy communications and event-driven mailings, its event-driven revenues and distribution revenues took a hit. This resulted in a 57-basis point decline in total revenues to $1.4 billion. Meanwhile, due to higher expenses, its net earnings declined 12.2% year-over-year to $79.8 million.
Broadridge has lagged behind its peer Fiserv, Inc.’s (FI) 53.1% gains on a YTD basis and 52.9% returns over the past year.
Among the eight analysts covering the BR stock, the consensus rating is a “Moderate Buy.” As of writing, the stock is trading slightly above its mean price target of $229.86.
